We’ve all heard the stories.
Construction projects that have come in way over budget, suffered accidents or wound up embroiled in ugly legal battles.
As a contractor, you are well aware that construction is a risky business.
What can you do to minimize the risks, keep your employees safe, and come out on top?
Read on to discover the most common risks in construction projects and what you can do to avoid them.
What if there was a way to quickly and easily manage your cash flow by automating all your construction paperwork and compliance documents?
That’s exactly what Flexbase is all about.
The Flexbase app makes it ridiculously easy to …
… all in one place and in just 2 minutes or less.
Staying aware of risks as a part of your business management process can greatly reduce the occurrence of those risks and yield significant financial benefits to your business, including:
Below, we’ll take a look at the 9 most common risks in construction projects and what you can do to keep from running into them.
Ask almost any contractor what the most common risk involved in construction is, and they will most likely say delays.
You can have the most well-planned construction schedule and the perfect timeline, but if your supplies are delivered late, you’re sunk.
Whether the delay is due to …
… delays happen regularly.
And if you have union workers, a strike could shut your entire project down overnight, preventing you from finishing on time.
Keeping an open line of communication between all parties involved in the project is the best way to minimize the effect of project delays.
Another of the big risks in construction projects is the weather.
Conditions such as …
… can delay a project and do serious damage to supplies and completed work.
The truth of the matter is that weather can be a very difficult risk to avoid.
Staying ahead of the paperwork shuffle on a construction project can be a full-time job.
The best way to be proactive in avoiding the risk of missing paperwork is by getting yourself organized.
Clear your desk — and the dash of your work truck — by using Flexbase to organize and automate all of your construction paperwork.
… Flexbase has you covered.
When we’re talking about the importance of risk management in construction projects, health and safety are right at the top.
Health and safety concerns on construction projects are ever-looming and can’t be underestimated.
According to the National Safety Council’s 2019 report, the construction industry is ranked as one of the top 4 most dangerous jobs in the US.
There’s a lot going on at a construction job and accidents happen, even with the most vigilant safety supervision. Conditions at a site change minute by minute, and unexpected hazards can show up at any time.
The last thing you want to see is a safety inspector pulling up to your site and finding violations and issuing stop orders.
How can you be proactive when it comes to minimizing health and safety risks in construction projects?
Keep everyone updated on the hazards that may be present during each stage of the project.
And be sure to provide your employees with plenty of training on:
Keeping a watchful eye on potential safety risks on your construction jobs will keep …
The next item on the list of risks in construction projects is shortages.
Shortages in the construction industry can come in the form of:
It’s no secret that the financial failure rate in construction is frighteningly high.
Sometimes the easiest and fastest way out is to file for bankruptcy.
One company may file, restructure, and re-emerge stronger than ever — while another may vanish into thin air.
Bankruptcy affects everyone on the job and may cause:
You can check your numbers and then run them again, but sometimes even the best-laid plans go awry, and your final cost is far above what you had planned.
Reasons for the project totals exceeding the budget include:
Taking the time to think through these potential issues can keep your job from turning upside down.
Change orders are unavoidable in the construction industry.
If they are managed carefully, change orders don’t have to result in you:
How can you reduce the risk of disagreements over change orders?
Remember that a change order is really a mini contract, and treat it just as you treat all contractual risks in construction projects.
Don’t even think about entering into a verbal agreement — write everything down and get it signed.
If you’re looking for an easy solution for keeping track of change orders, login to Flexbase. You can easily document and submit any changes that may arise — and avoid the risk of a payment dispute.
If your scope of work is vague and unclear, you are going to struggle big-time to keep your project on track.
Never underestimate the beauty of good communication and a clearly laid out plan.
Risk assessment and management in construction projects are top priorities and are designed to …
… the measures that are necessary to prevent exposure to risk.
This can be done by:
In every construction project, you will want to assess the risk for:
If you’re a contractor, you know quite well that your biggest time of risk is when the project timetable and price commitments are being hashed out.
The best way to proactively assess contractor risk is by evaluating the bill of quantities. If this is not accurate, you may be set to take a huge loss.
Client risks tend to revolve around time and quality.
Assessing and managing client risk includes:
The risk of safety should never be underestimated.
According to The New Civil Engineer, the construction industry has a death rate that is 4 times higher than the all-industry rate.
Even the smallest project should have a health and safety plan.
Fire is an ever-present risk on any construction site.
To be proactive in preventing the risk of fire, it is critical to adhere to all fire codes and regulations.
Minimize your risk factors in construction projects with Flexbase.
Our online platform provides the resources and tools you need to help manage construction businesses just like yours.
We automate all of your business paperwork and compliance by generating payment apps with:
And besides saving you time, Flexbase also brings you peace of mind in knowing everything you need is in one place.